How can you or your kids stay safe?
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Don't let young kids use social networking sites. Many sites say you should be over 14 or even 16. Most parental control programs block these sites.
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Don't add unknown people to your friends list. Only add people who are your "real" friends (not people you meet on the Internet) to your friends list or provide access to your area.
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Don't meet up with people you meet on the Internet. If kids must do it, make sure an adult comes along, at least for the first time.
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Remember that people aren't always who they say they are. The worst is that they may be child abusers "grooming" and so pretending to be kids in order to meet up, or they may be people who are bullies wanting to be unkind or even criminals who want to defraud you. If people are unpleasant you should be able to block them from contacting you.
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Don't put your personal information on your site. Don't put your address, mobile number, school name and things like where you hang out - people may use this against you.
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Tell people what you are doing. Kids should tell their parents about what is going on and who they are chatting with. Likewise, parents should be open so that kids feel comfortable talking about what goes on, so they have someone to turn to who won't over-react.
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Report abuse. Find out how you can report bad behaviour on the site you are using or if it's more serious to the authorities. Kids should talk to an adult they trust about bullying.
More links:
Reporting abuse links
Tips for parents
Tips for kids
PCguard Parental Control
Child Exploitation and Online Protection Centre